ORDER
Shri S.S. Sekhon
1. A Toyota Land Cruiser jeep registered in UAE ON 10.4.97 in the name of Shri E. Abdul Rahiman, appellant (referred to as A-1), imported at Kochi Port was sought to be cleared by BE to 4688 dt. 21.07.98 filed by M/s. International Shipping Agency CHA on behalf of A-1. The clearance was sought under PN 202/92-97 under Category-A without producing an import license.
2. Examination of the goods by Customs Officer on 24.07.98 revealed that the engine capacity was 2982. Thus as per PN 202/92-98, it was required that the said vehicle should be in the use of the importer for a period of one year or more, before its import to India.
3. Officers of DRs on information, inspected the Car on 10.08.98, detained the same and made enquiries. A show-cause notice dt. 13.11.98 was issued to A-1 & Shri V. Abdul Nazar another Appellant, (herein referred to as A-2) and Shri Yahu third Appellant (herein referred to as A-3). It was alleged that the car was purchased by A-2 in Dubai and arranged to be imported into India, for which purpose A-1 had lent his passport and signatures on the BE. A-3 had assisted, A-2 to obtain the pass-port from A-1. It was also alleged that the car was imported into UAE from Japan and cleared by Dubai Customs only on 5.3.98, therefore, it could not be in use of A-1 for a period of one year before coming to India.
4. The Dy Commissioner adjudicated the case and confiscated the car under Section 111(d) & 111(m) of Act, ordered a redemption fine of Rs. 18,50,000/- since he found the market value of the vehicle to be Rs. 35,00,000/-. He also imposed penalties under Section 112(a) of the Customs Act of Rs. 1,50,000/- on A-1 & Rs. 4,00,000/- each on A-2 & A-3.
5. The Commissioner (Appeals) keeping the market value of the car in view, reduced the fine imposed under Section 125 of Customs Act, 1962 to Rs. 10,00,000/- from the Rs. 18,50,000/- & confirmed he penalty finding and no infirmity in the Order was found.
6. We have heard both sides and considered the matter and find:
(a) That the appellants have pleaded the denial of natural justice in as much as material relevant to the issue has not been supplied. We find, no materia, in the SCN indicating CIF value, market value and the basis thereof, nor in the findings any reason how the market value of Rs. 35,00,000/- in this case has been arrived at by the Dy Commissioner and considered by Commissioner (Appeals). We would, therefore, find and order that the matter requires to be readjudicated, after the appellants are supplied the material on which the CIF and market values are based and given an opportunity to explain the margin of profit, which is required to be found out before a fine under Section 125 of the Customs Act 1962 could be determined.
(b) Once the fine imposed and its quantum is not determined, the consequent penalties also cannot be upheld as imposed A-1, A-2 & A-3.
(c) We refrain to arrive at findings on the other issues raised in the appeal and keep the same open.
7. In view of our findings, the order is set aside & appeals allowed as Remand for Denovo adjudication by Dy Commissioner of Customs, Cochin, Ordered accordingly.
(Pronounced in open Court on 14.5.2001)